Time is Running Out: Last Call for Portugal’s Golden Visa

Introduced in October 2012, the residence permit for investment activity (ARI), widely known as the Portugal’s Golden Visa programme, was crafted with the primary objective of attracting international capital to stimulate the country's economy, which had experienced the repercussions of the 2008 financial crisis. Since its inception, the programme has proven to be an astounding success, amassing over €6 billion in investment funds.

Portugal’s Golden Visa grants you a significant advantage by registering you in the central system of the Schengen Area. Consequently, you gain the freedom to travel effortlessly throughout Europe without the need for additional visas. This seamless access to the Schengen Area allows you to explore the diverse cultures, landscapes, and treasures of over 26 European countries without hindrance.

Moreover, after the completion of a five-year period, should you choose to pursue Portuguese citizenship, a Portuguese passport becomes your key to a world of possibilities. Holding a Portuguese passport empowers you to travel visa-free to an impressive 187 countries across the globe. This invaluable travel document eliminates the need for visa applications and streamlines your journey, enabling you to navigate international borders with ease and embrace new horizons without bureaucratic barriers.

Portugal’s Golden Visa opens the doors to a world of opportunities, granting you the privilege to reside, work, and pursue education in the country.

If you choose to make Portugal your full-time home with the Portuguese Golden Visa, it is essential to have medical insurance. However, as a Golden Visa holder, you enjoy unrestricted access to all public services, including healthcare and education, ensuring comprehensive support and resources for your well-being and educational needs.

Portugal offers a range of educational options. State schools adhere to the Portuguese curriculum, while private British and American international schools provide alternative educational paths, catering to diverse cultural backgrounds and preferences.

The Portuguese Golden Visa programme recognises the importance of family unity and provides the opportunity for the main applicant to extend the benefits to their eligible family members, via Family Reunification. The application process for both the main applicant and dependents can be completed simultaneously, streamlining the procedure: Spouse or life partner of the main applicant, children under the age of 18, dependent children under the age of 26 and parents of the main application

The Portugal Golden Visa Programme ensures that you will not bear any tax obligations unless you spend more than 183 days per year within the country. If this threshold is surpassed, you will be deemed a tax resident of Portugal.

Portugal presents a highly advantageous tax regime designed to attract and benefit foreign individuals considering relocation and becoming tax residents. Through the non-habitual residence (NHR) regime, the country offers a range of exemptions from income tax for the initial 10 years of residence. This regime provides a unique opportunity to optimize your tax position and enjoy significant tax advantages during your early years as a Portuguese resident.

By taking advantage of the Portugal Golden Visa Programme and subsequently obtaining non-habitual resident status, you can navigate a tax system that favours foreigners, offering substantial benefits and exemptions that can greatly enhance your financial well-being and overall quality of life.

The Golden Visa programme underwent a significant revision of investment rules that became effective on the 1^st of January 2022. Notably, the minimum investment amount has been increased from €350,000.00 to €500,000.00.

Consequently, the current investment options available under the programme are as follows:

1. The transfer of at least €1.5 million to Portugal, which may have one of the following investment sub-types:

• A bank deposit.
• The purchase of a shareholding in a Portuguese company or the incorporation of a single-member private limited company having a paid-up share capital of at least €1.5 million, such company being free to invest wherever and in whatever it wants.
• The purchase of Portugal sovereign debt bonds.
• The purchase of any securities issued by Portugal-based entities.

2. A Real Estate Investment or Real Estate Investment and its rehabilitation for Non-residential Purposes of at least €500,000.00 (reduced to €400,000.00 if located in a "low density area"), or €350,000.00 (reduced to €280,000.00 if located in a "low density area").

3. A Real Estate Investment and the Real Estate Investment and its rehabilitation for Residential Purposes is limited to properties located in the inland territories of Portugal identified in the addendum to Ordinance no. 208/2017 of 13th of July, and in the islands of Madeira and Azores, and keeps the same investment minimum amount: €500,000.00 (reduced to €400,000.00 if located in a "low density area"), or €350,000.00 (reduced to €280,000.00 if located in a "low density area").

4. An investment of at least €500,000.00 in scientific research conducted by accredited institutions that are part of the national scientific and technological system (reduced to >€400,000.00 if located in a "low density area").

5. Capital transfer with a value equal to or above 250 thousand Euros for investing in artistic output or supporting the arts, for reconstruction or refurbishment of the national heritage, through the local and central authorities, public institutions, public corporate sector, public foundations, private foundations of public interest, networked local authorities, local corporate sector organisations, local associations and public cultural associations, pursuing activities of artistic output, and reconstruction or maintenance of the national heritage.

6. Investing at least €500,000.00 in units of Portugal-regulated funds dedicated to the capitalisation of companies, provided that the fund invests at least 60% in Portugal-registered businesses, and that the maturity of said units is no less than 5 years from the date they are bought.

7. Investing at least €500,000.00 in setting up a Portuguese company that creates and keeps 5 new permanent jobs or increasing the share capital of an existing Portuguese company that creates or keeps at least 5 permanent jobs for a minimum period or 3 years.

8. A business, in the format of a single-member private limited company (no minimum investment required), that creates and keeps at least 10 new permanent jobs in Portugal (reduced to >8 if located in a "low density area").

The initial stages of the Portugal Golden Visa application process encompass the following key steps:

1. Acquiring a Portugal Tax Identification Number (NIF): This essential document is mandatory for all applicants.
2. Establishing a Bank Account in Portugal: As part of the application process, it is necessary to open a bank account in Portugal and transfer the required funds to this account.
3. Selecting an Investment Path: A crucial decision lies in choosing the most suitable investment route for your Golden Visa application.

Portugal's Golden Visa programme celebrated its 10th anniversary in October of last year, having successfully captivated significant investments from non-European Union countries. According to data released by SEF - The Immigration and Border Service, in early January 2023, the programme recorded an impressive revenue of €654.2 million in 2022, showcasing a notable increase of 41.9% compared to the previous year.

Based on SEF data, the number of Residence Permits for Investment (ARI) granted last year amounted to 1,281. The distribution across the months was as follows: 94 in January, 94 in February, 73 in March, 121 in April, 112 in May, 155 in June, 80 in July, 77 in August, 120 in September, 83 in October, 121 in November, and 151 in December. Additionally, family members of ARI holders received 1,533 residence permits in total, with 192 issued in December alone.

To date, a total of 11,535 ARIs have been granted, distributed as follows: two in 2012, 494 in 2013, 1,526 in 2014, 766 in 2015, 1,414 in 2016, 1,351 in 2017, 1,409 in 2018, 1,245 in 2019, 1,182 in 2020, 865 in 2021, and 1,281 in 2022.

Regarding property investment, a significant number of 10,593 permits have been granted, accounting for a total investment of €6.041 billion. Within this figure, €534.1 million corresponds to purchases for urban rehabilitation, amounting to 1,485 permits.

Furthermore, 920 permits have been granted under the capital transfer criterion, with a total deposited amount of €712 million. As for the job creation criterion, which requires a minimum of 10 jobs, 22 Golden Visas have been issued.

The cumulative investment in the programme since October 2012 to December 2022 stands at €6.754 billion. In terms of nationality, China leads with 5,247 nationals receiving ARIs, followed by Brazil (1,168), Turkey (546), the US (537), and South Africa (507). Alongside the ARIs, a total of 18,808 residence permits have been issued to family members of ARI holders since the programme's inception.

This substantial growth and success are a testament to the programme’s enduring appeal and the confidence it instilled in international investors seeking opportunities within Portugal.

In essence, Portugal's Golden Visa provides a myriad of advantages to non-EU citizens seeking to establish residency in the country:

Expedited residency process: The Golden Visa programme offers a streamline pathway to gaining a residency permit in Portugal, with the opportunity to seek permanent residency or citizenship after a specified period of time.

Opportunities for investment: To qualify for the Golden Visa, applicants must undertake a suitable investment in Portugal, which can encompass property acquisition, business expansion, or capital transfer.

Freedom of movement: Possessing a residency permit in Portugal allows Golden Visa holders to travel within the Schengen area and visa-free or visa-on-arrival access to 187 destinations worldwide.

Family Reunion: The programme facilitates family reunification, allowing spouses, dependent children, and dependent parents to request residency in Portugal.

This is a final reminder to non-EU citizens contemplating residency by investment in Portugal. Portugal’s Golden Visa programme offers unparalleled benefits and opportunities. We strongly encourage you to contact our team without delay to navigate the application process.